Italian engineering group Webuild was facing losses of $4 billion-$5 billion on Snowy 2.0 before the contract was restructured, a move that pushed its price up to about $12 billion, according to Snowy Hydro chief executive Dennis Barnes.had essentially doubled from the last official estimate of $5.9 billion.Webuild, which has been trying to expand its business in Australia, was hired in early 2019 to build Snowy 2.0, signing a $5.
In the restructured contract, Snowy will cover costs and provide a profit margin and offer incentives for outperformance, while Webuild faces penalties if it does not deliver to plan.including whether it would have stopped work on Snowy 2.0 if the contract could not be restructured and whether its Australian business would have collapsed.